Changes in the mining tax regime against time

After it was approved last week in the Plenary of the Congress of the republic Almost unanimously the public budget for fiscal year 2022, thanks to a constant dialogue between the Executive and Legislative, the Ministry of Economy and Finance (MEF) will seek to replicate this joint work to get Parliament to grant the Government the powers to legislate in tax matters.

However, the deadlines are short, since the Executive seeks to approve a large part of the tax reform before the end of the year so that it can take effect from 2022. Therefore, he asked Congress to give priority to this issue.

“Considering that Congress is closing and that it will not reopen until March, and there are a series of laws that if they are not given before December 31, in the case of income tax or mining companies, they cannot be constitutionally applied next year, then it would be a problem for the country, “said the head of the MEF, Pedro Francke, to a local media.

Likewise, he said that in case they are not granted the powers, from their office they will insist on presenting bills through Congress, however, this process would be slower.

“We will insist on the presentation of bills to try to advance in things that seem urgent and indispensable to us, now obviously progress is going to be much slower and more complex, and Peru’s needs are great,” he added. Francke.

Mining regime

One of the main axes of the tax reform proposed by the Executive is to make changes to the mining tax regime, since currently mining companies are obtaining higher profits than projected by the rise in mineral prices.

And it is that, thanks to this new period of historically high prices of minerals, Minister Francke estimates that mining would have up to an additional US $ 15 billion, Therefore, it considers that it is time to make changes to the mining tax regime, since it estimates that the copper price will remain approximately 25% above its 2020 price.

In this regard, the economist José de Echave points out that it is a good time for the current tax regime to be modified and considers that the Government’s proposal is correct, since new taxes are not being created, but tax rates are being raised. especially to mining in the highest sections of operating margin, that is, those that are making more profits with the rise in prices. In addition to increasing royalties.

He also stressed that this reform is with the advice of the International Monetary Fund (IMF), as it will guarantee that the mining sector does not lose competitiveness.

“It would be very important that it be approved at the end of the year so that the new tax policy begins to take effect as of 2022 and allows greater collection and a better economic recovery,” said De Echave.

For his part, Francisco Pantigoso, professor of Law at the Universidad del Pacífico, pointed out that a reform of this type requires a greater discussion that also involves taxpayers. He also criticized that the proposal is very general and does not specify what will be the maximum rate that would be applied in case of obtaining the faculties.

EIA of mining project advances

The Ministry of Energy and Mines (Minem) confirmed the continuity of the work tables with the communities in Espinar, in Cusco, within the framework of the prior consultation regarding the Antapaccay Exploitation-Tintaya Expansion-Coroccohuayco Integration mining project.

“On December 1, Minem will reach an addendum proposal to the prior consultation plan for its evaluation and approval; and on the 14th of that month a meeting will be held to discuss issues related to the PCM, the Minem and the Minam ”, he specified.

It was agreed to create a commission between the General Office of Social Management of Minem and the native communities.